Litigation funding for legal costs of high-value claims is provided by third parties who invest in claims in return for a share of the proceeds if the claim is successful. There are a number of issues that need to be addressed in relation to applications for funding of high-value claims.
What Counts as High-Value
While there is no formal definition of ‘high value claims’, the minimum value of a claim that a funder would consider is typically around £500,000. However, most funders have a preferred level of around £1m+.
Merit and Recoverability
Funders look at 2 main factors. Firstly, the merits of the case and secondly the recoverability of the case. A well-evidenced claim against an insolvent defendant will likely receive little interest from funders regardless of the merits of the case.
How Funding Is Usually Structured
At this level, claims are typically advanced on a staged drawdown basis as the case progresses through various milestones. Portfolio funding also is commonly advanced, where a funder’s portfolio includes a number of related claims. This can help enhance overall negotiation power.
Due Diligence on Quantum
The funder will want to scrutinise your claim for high value claims’ litigation funding online for the best deals, especially in relation to your assessment of damages. An independent expert report and full evidence of financial loss will clearly illustrate your claims for high value litigation funding online.
Preparing Your Claim
Basic information to consider when preparing a claim to seek litigation funding includes: (i) counsel’s opinion on the merits of the claim; (ii) a realistic assessment of quantum; and (iii) evidence of the assets of the defendant(s). For Litigation Funding London, visit novo-modo.co.uk/litigation-funding-london. The venue for hearing of high-value funded claims is discussed in how UK civil courts handle high-value commercial claims; in many cases it will be obvious that a claim is to be heard in one of the specialist venues.
A well-prepared claim is crucial to securing funding for a high-value claim.